2G scam: After Raja’s arrest, focus on telcos

New Delhi: After the arrest of A Raja, along with his personal secretary RK Chandolia and former telecom secretary Siddharth Behura, the big question is whether the probe into the 2G spectrum scam will go beyond the arrests to the telecom companies that violated rules, and benefited.

The CAG report clearly shows how several companies, including India’s top corporates, were privy to insider information and broke rules at every stage to win the 2G contracts.

With the CBI registering a case against Raja for favouring private telecom companies in giving 2G licenses the heat could now be on the companies.

The CAG report clearly stated that out of the 122 new licenses, 85 licenses went to firms that that did not meet the eligibility criteria.

Six of the Unitech group companies, which applied for licenses for 20 circles, did not meet requirements, blames the report.

According to the report, ineligible telecom companies won several circles when Raja was minister while Swan Telecom ignored cross holding rule.

Many questions are now coming up on what next in the ongoing investigations in the 2G scam – will companies that received undue favours lose the 2G licenses?

Raja is arrested for abusing official position to favour telecom companies. Will there be criminal proceedings against them?

Will the Government admit that first come, first served policy is flawed and switch to auctions?

Will the Government probe the windfall stake sales of original 2G bid winners?

Will the Government now admit that there was loss of revenue in 2G?

All eyes will be on the CBI to take the probe beyond three arrests and demonstrate the Government’s resolve to prosecute the guilty.